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Spending on public cloud services in India to grow 29.4% in 2021, says report

The rising popularity of the cloud has gone hand-in-hand with that of 4G broadband technology and of smartphones (Photo: iStock)Premium
The rising popularity of the cloud has gone hand-in-hand with that of 4G broadband technology and of smartphones (Photo: iStock)

  • Prior to the pandemic, India was at an early stage of cloud adoption when compared to more developed countries. The pandemic and the lockdown accelerated this rate as enterprises had to move critical business applications to cloud so employees could work remotely

NEW DELHI: Spending on public cloud services in India is expected to grow 29.4% to $4.1 billion in 2021 from $3.1 billion in 2020, according to a forecast by Gartner Inc, a US-based research and advisory company.

Cloud application services (SaaS) is expected to be the biggest segment yet again with estimated spending of $1.3 billion in 2021, while cloud system infrastructure services (IaaS) is likely to see the highest growth at 44.6% with an estimated spending of $1.1 billion.

Low cost of entry provided by public cloud services will make the adoption easier for Indian enterprises which are usually more price sensitive.

The recent increase in cases of cyberattacks against enterprises is a huge concern for many organisations which reflects in the expected rise in spending on security. According to Gartner, spending on Cloud Management and Security Services is expected to grow 31.2% in 2021 with an estimated spending of $362 million.

"The onset of the covid-19 pandemic was the starting point of the Cloud 2.0 era. Indian enterprises were not ready for the large scale of remote work. However, public cloud delivered on its promise of scalability, cost efficiency and business resilience," Sid Nag, research vice president at Gartner, said in a statement.

Nag feels, as digitalisation efforts further evolve in India, the demand for public cloud is likely to grow among Indian enterprises.

Prior to the pandemic, India was at an early stage of cloud adoption when compared to more developed countries. The pandemic and the nation-wide lockdown accelerated the adoption rate as enterprises had to move critical business applications to cloud so employees could work remotely.

According to Garter, the recent investment by Amazon Web Services, Google Cloud and NTT in the India market is a testament to the growing importance of the India market for public cloud service providers.

"While end-user spending on cloud in India is increasing, there is a long road ahead for Indian enterprises to achieve the same market maturity as the U.S. or Europe," added Nag.

The overall IT spending in India is projected to grow at 6% year-on-year to $81.9 billion in 2021, according to another Gartner report released earlier this week.

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